Mobile Broadband in Europe: Profitability Challenge or Next Growth Engine?

| Point of View

Maintaining a Profitable and Quality Mobile Broadband Offering

Mobile broadband is emerging as a growth driver for European Telcos and in certain geographies has already started to make a significant impact on fixed broadband services.

However this growth is exerting pressure on mobile data capacities, even as price erosion threatens to affect profitability of mobile broadband. Operators will need to focus their attention on three broad areas: managing profitability, investing in backhaul and access capacity, and maintaining high quality services.

In the short term, differential pricing of services and implementing traffic shaping measures can help operators optimize use of capacity by limiting the usage of high-bandwidth applications. For the long-term, operators will need to look at means to reduce backhaul capacity OPEX, through investments in scalable and cost-effective backhaul based on fiber.

In this paper Capgemini concludes that both incumbent operators and challengers will need to have a clear roadmap for improving the profitability and quality of mobile broadband services.